Daily Stock Analysis: MPLX LP

Pump Jack, Oilfield, Oil, Fuel, Industry, Petroleum

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MPLX LP, bearing the ticker symbol MPLX, was reviewed and selected for one of my previous dog of the week portfolios. This, however, is the first mention of MPLX for Viking.

MPLX is a partnership that owns both pipelines and gathering and processing assets with extensive holdings in the Appalachian region. The asset base is made up of pipeline assets dropped down from Marathon Petroleum, its sponsor, and gathering and processing assets from MarkWest, which it acquired in 2015. MPLX also acquired Andeavor Logistics in July 2019.

MPLX GP LLC acts as the general partner of MPLX LP.

The company was incorporated in 2012 and is headquartered in Findlay, Ohio.

MPLX LP operates as a subsidiary of Marathon Petroleum Corporation.

Three key data points gauge MPLX LP or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MPLX Price

MPLX’s price per share was $34.00 at Thursday’s market close. In the past year, MPLX’s share price rose by $1.61 or 5%.

If MPLX stock trades in the range of $25.00 to $45.00 this next year, its recent $34.00 share price might rise to $38.00 by next year. It could go down about the same amount.

My upside estimate of $4.00 is $1.36 below the median of annual price targets from 14 analysts tracking MPLX for brokers.

MPLX Dividend

MPLX’s Q dividend was declared on April 25 to be $0.775 as of its coming May 15, 2023, the scheduled pay date to shareholders of record is May 4th.

MPLX Returns

Adding the $3.10 expected annual dividend to my $4.00 estimated price upside reveals a $7.10 potential gross gain per share for the coming year.

At Thursday’s $34.00 closing price, a little under $1000 would buy 29 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.34 per share.

Subtracting that maybe $0.34 brokerage cost from my estimated $7.10 gross gain estimate makes a net amount of $6.76 X 29 shares = $196.04 or a 19.6% net gain.

In the next year, our $1K investment in shares of MPLX could generate about $91.20 in dividends. Furthermore, a single share of MPLX at Thursday’s $34.00 price is over 2.5 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a time to consider MPLX shares, based on their dividends for 2023. The dividend from the $1k invested is 2.68 times greater than MPLX’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of MPLX LP. Only time and money invested in this stock will determine its future market value.

More By This Author:

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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